Silverback Due Diligence

Silverback Due Diligence

Before we dive into negotiation dynamics and functional insights, let’s define the mindset behind what I call “gorilla due diligence.”

Gorilla due diligence is the practice of using observational data, informal interactions, and real-time insights to build a more complete picture of a target company. It’s the belief that every interaction is a source of intelligence—from how leaders respond to tough questions to how employees talk about their work culture. This approach supplements traditional financial and legal analysis with human-centric, in-the-moment observations that often reveal what formal diligence might miss.

It’s about helping your leadership see that human capital inputs—culture, morale, communication, and leadership trust—aren’t soft science. They are critical indicators of how a company truly operates and whether it aligns with your deal thesis. By capturing those insights early, you can better support the business case for the deal, spot red flags faster, and avoid integration headaches down the road.

Engage Your Entire Team—Functional Areas Can Uncover Key Insights

One of the critical aspects of gorilla due diligence is leveraging the entire due diligence team. Each functional area—finance, operations, legal, HR—has access to different layers of information, and each will see things through their own lens. The CFO will unearth financial issues that operations might miss, while HR may pick up on morale problems that aren’t apparent in financials.

That’s why I make it a point to give each functional lead specific observations and themes to look for. For example, while the CFO is digging into cash flow and liabilities, I ask HR to look for cultural risks and attrition concerns. Each functional area should be given the freedom to uncover their unique insights, which can then be synthesized into a more comprehensive due diligence analysis.

Synthesize for a Holistic View

Once you’ve collected insights from all functional areas, it's critical to synthesize this information to form a holistic view of the target company. Combining financial data with human capital insights, operational realities, and cultural observations allows for a more well-rounded due diligence assessment. It’s not just about the numbers; it’s about understanding the whole organization, how it operates, how people feel about working there, and whether the company is equipped for the future.

Why Gorilla Due Diligence is Critical

Traditional due diligence is too often about the technical - financial health, legal exposure, and operational metrics. But these only tell part of the story. To truly understand whether an acquisition is a good fit, you need to dig deeper and ask: How does this company really run? What’s the culture like? How do employees view their leadership? And crucially, how open and honest is the target with us?

Gorilla due diligence is about using every interaction, every conversation, and every observation as a chance to learn something new. It’s about pushing beyond the formalities of the data room and curated presentations to get to the heart of what makes the company tick. By doing this, you uncover potential risks, opportunities, and deal-breakers that would otherwise go unnoticed.

Final Thoughts

M&A is not just about financials; it’s about people, culture, and leadership. The success of a deal often hinges on the details that aren’t in the data room. By approaching due diligence with a gorilla mindset—one that looks for insight in every interaction and observation—you can build a more comprehensive understanding of the target, mitigate risks, and position the acquisition for success.

Remember, the best due diligence happens outside the data room.

What’s been your experience with deep-dive due diligence? Let’s discuss in the comments.

Until next time – Stay strong, stay focused, stay sane, and stay the course. It is all going to be ok…